NATIONAL SMALL INDUSTRIES CORPORATION Vs. TULIP ELECTRICALS P LTD
LAWS(CAL)-2007-12-54
HIGH COURT OF CALCUTTA
Decided on December 10,2007

NATIONAL SMALL INDUSTRIES CORPORATION Appellant
VERSUS
TULIP ELECTRICALS P. LTD. Respondents

JUDGEMENT

- (1.) AP No. 175 of 1999 is a petition under section 9 of the Arbitration and Conciliation Act, 1996. During the pendency of this petition the respondent nos. 2 and 4 have expired. GA No. 3010 of 2007. is for recording the death of such deceased respondents, bringing their heirs on record after setting aside abatement, if any.
(2.) AN affidavit-of-service has been filed from which it appears that the heirs of the deceased respondent Nos. 2 and 4 have refused to accept service.
(3.) BUT before the application for substitution can be taken up, there is an important matter which has come to the notice of Court. It appears that no attempt was made by the petitioner for commencing arbitral proceedings. The petitioner submits that in view of section 9 of the 1996 Act permitting the petitioner to commence a reference after making such petition, there is no real time-limit and it is open for a petitioner to take steps well after the institution of the petition for the commencement of a reference. Section 9 of the 1996 Act, insofar as it permits a petitioner to apply to Court for an interim order before a reference is made, is to ensure that the petitioner suffers no prejudice during the period before the Reference when the petitioner may be in the immediate need of protection in respect of a matter covered by the arbitration agreement. There is an underlying undertaking given by a petitioner who applies under section 9 of the 1996 Act before a Reference, that such a Reference would be immediately commenced.;


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